November 13, 2010

WEEKLY CHART OF USD
DAILY CHART
DAILY CHART
  • First chart is the Weekly line chart with trend line and resistance line drawn at 79. The supporting trend line was violated recently but price did not sustain below the trend line for too long and came back above it.
  • There is a broadening bottom pattern which is developing in daily chart. If this gives a breakout then dollar may start moving up fast. 79 is what the dollar need to close above for moving up.
  • Price is finding resistance near the 50 DMA. If price breaks and sustains above this level that can trigger a reversal in dollar.
  • Staying below the 50 DMA and closing below the weekly trend line can give fresh lows for US Dollar.
  • DOW JONES WEEKEND UPDATE
DOW JONES WEEKLY CHART
DOW JONES 4 HOUR CHART
 DOW JONES DAILY CHART WITH MOVING AVERAGE
 
  • Weekly chart has turned completely negative. Breakout was confirmed above 11247 but not even a full candle formed above this level.
  • The stochastic indicator was showing some negative divergence and the correction followed. Now we have to see if stochastic falls below 80% which can confirm a weekly sell.
  • Daily chart has closed below 20 day moving average after a long time. Price closed above 20 DMA when it was around 10200.
  • Four hour chart is shown with a trend line break which looks negative. Things may turn positive only if price breaks above the black dotted line shown in the four hour chart.
  • S&P 500 IN A CHANNEL

  • Channel support line stopped ES from declining further. 
CHART-I
  • ES took support at 1191. Channel support comes at 1190 levels which should hold ES from declining further during this week.
  • From here we may see an up move towards 1200 levels.
  • SPY is approaching its 50 moving average in 4 Hour chart.
  • Last time price met this moving average was when price was at 109 levels.
  • This down fall may take a pause around 119. But Price breaking and closes below this moving average will favour the bears completely.

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"All through time, people have basically acted and reacted the same way in the market as a result of: greed, fear, ignorance, and hope. That is why the numerical formations and patterns recur on a constant basis."
—Jesse Livermore